Answer:
1. Python is required to include $60,000 in his gross income.
2. Jacob is not required to include the $1,400,00 in his gross income.
3. Linda is required to include $4,000 in her gross income.
Explanation:
Each of the questions is explained as follows:
1. Python
Being selected as the most valuable player in the Super Bowl is not a kind of achievement that is qualified to be excluded from gross income. Python's achievement would have qualified to be excluded from the gross income if he had donated it to a not for profit organization or qualified governmental agency, but he did not satisfy this condition.
Therefore, the total value of the automobile which $60,000 is required to be included in the gross income by Python.
2. Jacob
If the United Nations is a not-for-profit organization or qualified governmental agency, Jacob will not include the $1,400,000 Nobel Peace Prize he got and donated to the United Nations in his gross income.
If we therefore assumed that the United Nations is a not-for-profit organization or qualified governmental agency, Jacob is not required to include $1,400,000 Nobel Peace Prize amount donated to the United Nations in his gross income.
3. Linda
Winning Craig County Fair beauty pageant is not in itself a qualified achievement like scientific and artistic achievements. But the award of $6,000 tuition to Linda is a qualified scholarship that she can exclude from his gross income, while the award of $4,000 he got for meals and housing is not qualified to be excluded.
Therefore, Linda is required to include $4,000 in her gross income.
All the best.
